2d. Re: Gambler Wins Case Against IRS About Gambling Records
Date: Mon Mar 17, 2008 9:12 pm ((PDT))I have mentioned in a previous post why win/loss statements are not
all they are cracked up to be in my opinion but I forgot to mention
that I can tell you for a fact that many small casinos and many
indian casinos do not issue them. One place told me they never even
heard of one and would not have any idea how to issue one. I
personally think its a roll of the dice. Some gamblers will win
against the IRS and some won't. Maybe the judge makes a difference.
I doubt anyone will ever know for usre.
As I recall (without pulling them out), certainly some, if not all, of my win/loss statements (in years when I bother to send them in with my tax return, some years I just use the log only), have a statement on them that they do NOT necessarily reflect win / loss. This is pretty obvious, since you may or may not have had the card in at all times, and while pulling or forgetting the card can't affect your recorded activity in any predictable manner, it certainly can affect your recorded activity in an unpredictable manner, and it certainly will cause the win / loss report to be incorrect, or at the least, incomplete.
And, of course, you may have wins and losses unrelated to slot play, and unrelated to rated table play (such as blackjack or craps, where, while I know the pit boss makes a guess as to your win/loss, I don't think they even try to generate a win / loss statement), such as sports betting, poker, and illegal gambling (which, even if illegal, is still subject to the tax laws - remember Al Capone?).
That doesn't mean it can't SUPPORT other documentation, but it does mean that it can be tossed out in an audit. I submit my win/loss statements as the ONLY documentation for gambling when they document losses WAY in excess of my W2G wins - technically, it's not an accurate record of my gambling, but it's enough to make it quite obvious that I don't owe tax, and that's what it's all about. The IRS usually is not going to "go after" people where it's unlikely they won't end up recovering any money.
And I have the diary; I just don't want to transcribe it from the way I keep it (on 3 by 5 cards) to a log they would be willing to consider, esp. in a year when I've lost so much that the win/loss and W2Gs are sufficient to make it pretty obvious that I don't owe taxes.
On the other hand, of course, they (IRS) are so intimidating to most people, that I guess it can't hurt for them to try to collect additional tax via an audit, knowing that some people will be afraid or just won't bother to challenge them, and will just pay the govt. some undeserved money, rather than take chances with disputing the audit, or going to court over the whole thing. Only when you get into the size of tax due that was discussed in the original case will it be an obvious move to get some lawyers and take it to court, hoping for a win - when there's so much to lose if you don't give it a shot.
--BG
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